Formation Securities Plans Tokenized Stock Trading on Solana

Formation Securities to Launch Tokenized Stock Venue

Formation Securities has announced its intention to establish a tokenized securities trading platform on the Solana blockchain, having notified the Securities and Exchange Commission (SEC) of its plans. This initiative, expected to commence in early 2027, will utilize the SEC's "Innovation Exemption," which allows for trading tokenized stocks through permissioned automated market maker pools.

The platform aims to offer continuous trading and rapid settlement of transactions while ensuring that investors retain their voting and dividend rights associated with traditional stocks. The initial offerings are anticipated to include tokenized shares from Exodus Movement, Forward Industries, and Galaxy Digital.

Christopher Montagano, president of Formation Securities, emphasized the importance of collaboration with public companies to foster a successful market for tokenized stocks. The company licenses its trading technology from Orca, a Solana-based exchange, and is supported by tokenization firms like Securitize and Superstate, which will provide the underlying tokenized shares.

Access to the trading venue will be restricted to verified investors, who will be able to trade through Formation’s platform and associated distributors, including Alpaca and CoinList’s Passage. Formation cited Solana's advantages, including its speed and low transaction costs, as key factors in their decision to build on this blockchain, which currently manages over $5 billion in tokenized real-world assets.

This development adds to the growing competition in the tokenized stock market, which includes initiatives from NYSE and other platforms like OKX-ICE. Formation Securities is positioning itself as a significant player in this evolving space, which seeks to leverage blockchain technology for more efficient trading of stocks.